Kraken asking for full SSN

[Abiky]

I've used some exchanges in the past, but none of them asked me for my full SSN (Social Security Number). Coinbase only asked me for the last 4 digits of my SSN. But when I when to verify my ID with Kraken, I'm being asked to provide the full SSN.

With exchanges being a constant target of hackers, this would pose to be a huge sexurity risk. They could easily steal the identity of US-based customers. Has anyone gone through this experience before? Why is it that some exchanges ask for the last 4 digits of the SSN, while others don't? Your input will be greatly appreciated. Thank you very much.

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[Oshosondy]

Why is it that some exchanges ask for the last 4 digits of the SSN, while others don't? Your input will be greatly appreciated.

There won't be no other reasons that to know their customers more. To be able to identify their customers better. I am not from US and I do not know what social security number is for, but for an exchange to know more about customers, they can ask for more information.

Know that even with drives license, international passport, national identity and other information requested for on crypto exchanges are all risky, especially if the documents is stolen during data breach by hackers. This is the reason some people do not want to trade on KYC exchanges, but no-KYC exchanges are reducing, Kucoin is also on the move to enforce KYC.

[coupable]

Why is it that some exchanges ask for the last 4 digits of the SSN, while others don't? Your input will be greatly appreciated.

There won't be no other reasons that to know their customers more. To be able to identify their customers better. I am not from US and I do not know what social security number is for, but for an exchange to know more about customers, they can ask for more information.

According to what I think, drives license, international passport, national identity is sufficient to prove the identity of any user, and address proof documents are also known. I find it strange that the Social Security number is requested and what purpose it might have. He also ruled out that the authorities might request this even if the platform asked about user data.
Greater targeting of user privacy leads to necessarily fewer users and thus less popularity and lower revenues, especially since there are alternatives available in the market.

[Potato Chips]

Never gone through but I would guess... different exchange could have different policies.

Were you trying to go for 'Intermediate' level? According from their self help article, kraken is treating the tier "like opening a bank account"

The Intermediate and Pro levels are like opening a bank account and require supporting documents.

Meanwhile, 'Express' tier only requires the last four digits of your SSN, was this not available to you or it just did not fit your use case?

[LeGaulois]

Not so surprising to me.

Correct me if I'm wrong: the SSN was basically for the SS administration but then it became too the national identification number (for taxes and stuff). In some areas (if not in all states), or with some banks, you can't open a bank account if you don't have one.

(out of curiosity ID cars have a serial numbers?)
It's perhaps because for an exchange, the SSN is the most efficient way to know the customer since no one else than the citizen is supposed to know it. An ID card can be photoshoped, change your face or something like that.
Don't know why Coinbase only ask for the 4 digits, but in the old time the first digits were an area code (the state)

For americans, pretty dangerous to share their SSN  if you ask me. I'd think twice before to share.

[Yamane_Keto]

It is a level of identity verification and is often imposed for those who want to conduct transactions with relatively high limits, such as more than 100,000 dollars per day, then the platform requests Social Security Number to be able to ensure that you know your financial background, the nature of your work, and better tax investment.

By going to the withdrawal limits page, you will find that the withdrawal limits for the 'Intermediate' account per day are $500,000 and about Unlimited per month.

As a user, it is normal for your withdrawal limit to be $5,000 per day, or about $150,000 per month, which is a good restriction for Starter accounts.

https://support.kraken.com/hc/en-us/articles/360001449826-Deposit-and-withdrawal-limits-by-verification-level

I see no reason why a trader would want to increase the $5,000 limitation and not want to show up his Social Security Number.

[Abiky]

Never gone through but I would guess... different exchange could have different policies.

Were you trying to go for 'Intermediate' level? According from their self help article, kraken is treating the tier "like opening a bank account"

The Intermediate and Pro levels are like opening a bank account and require supporting documents.

Meanwhile, 'Express' tier only requires the last four digits of your SSN, was this not available to you or it just did not fit your use case?

I've contacted a customer support representative when having issues linking my bank account. The representative said that I needed to provide more verification documents so that I could be able to perform ACH transfers. She said that giving the full SSN would be enough to unlock my account for such feature. My account is now at the "Intermediate" level (if I'm not mistaken).

This is totally weird for me, especially when crypto exchanges aren't the same as banks. Maybe the law has changed in the US? I was skeptical at first, but decided to give away my SSN as I've had no other choice to buy/sell crypto with USD (Coinbase was too problematic for me, and Bitstamp stopped accepting ACH deposits a few months ago). I really hope Kraken takes security very seriously, especially when it's collecting very sensitive information from customers. It's a centralized exchange so anything can happen. 

[The Sceptical Chymist]

For americans, pretty dangerous to share their SSN  if you ask me. I'd think twice before to share.

If an exchange only asks you for the last 4 digits of your SS, they know your entire SS number--just for anyone who's confused about that.  Even if Kraken only asked for the last 4 digits, if they got hacked I assume the hacker would get your entire SS # unless it was protected separately (which I doubt it would be).

Also, there are plenty of websites that ask you to enter your entire SS number (if you open up an account online with certain banks or apply for a student loan, for example).  One would hope there would be better security with banks and government websites than crypto exchanges, but who knows?  Kraken is US-based, and I'd bet if you had to enter sensitive info on their site it'd be safe in general, but with something like an entire SS number....that's something you should only have to enter once.  Hopefully that's the case.

Besides, many of you are young.  When I was in college, professors used to post grades outside their offices with entire social security numbers visible, followed by the grades on exams.  It was very easy to determine who had what SS number if you knew how someone scored on an exam.  To steal someone's identity, you need more than just that info.  That's why places often ask you not only for that but your date of birth and things like your mother's maiden name. 

[hugeblack]

that I could be able to perform ACH transfers. She said that giving the full SSN would be enough to unlock my account for such feature. My account is now at the "Intermediate" level (if I'm not mistaken).

This is totally weird for me, especially when crypto exchanges aren't the same as banks. Maybe the law has changed in the US? I was skeptical at first, but decided to give away my SSN as I've had no other choice to buy/sell crypto with USD (Coinbase was too problematic for me, and Bitstamp stopped accepting ACH deposits a few months ago). I really hope Kraken takes security very seriously, especially when it's collecting very sensitive information from customers. It's a centralized exchange so anything can happen. 

Was the withdrawal amount large or not compatible with the traditional withdrawal processes, because sometimes the bank may have requested those data from the platform, and therefore they asked you for it.

They won't ask you for this data all of a sudden something happened that made their systems increase the level of risk on your account.

Unfortunately, CEXs have started asking for a lot of data recently. In the past, photocopying passports and any home bill was enough to prove your identity. Now you need to create a video and verify a lot of things. So if the amount of trading you do is a little, I suggest you start experimenting with bisq or any DEXs, otherwise you have to be Ready for any data that may be asked of you.

[Lucius]

It may sound too harsh, but everything that happens when it comes to CEX is actually the fault of those who use them and think it's the only way they can trade cryptocurrencies. As things have evolved over the last few years, I think CEX is going to be looking for more personal information, and it's going to be far more complicated to have a CEX account than a bank account.

I have never agreed to such conditions of the game, nor will I agree in the future, but if someone has no other choice, in that case they must accept the risk that their data will at some point become available to someone who should never have seen it.

[RickDeckard]

I've used some exchanges in the past, but none of them asked me for my full SSN (Social Security Number). Coinbase only asked me for the last 4 digits of my SSN. But when I when to verify my ID with Kraken, I'm being asked to provide the full SSN.

With exchanges being a constant target of hackers, this would pose to be a huge sexurity risk. They could easily steal the identity of US-based customers. Has anyone gone through this experience before? Why is it that some exchanges ask for the last 4 digits of the SSN, while others don't? Your input will be greatly appreciated. Thank you very much.

Being a CEX I'm not surprised by the information that is being requested. Given that you've been asked for your SSN I'm assuming that you're US based[1] since it is the only place where they ask for it. Remember that CEX's hold a vast private information about you and will eventually hand over that data when law enforcement comes knocking into their door (and other companies that no one knows about). In Kraken case that just happened - According to US court ruling published two days ago, Kraken has to hand over the following information to the IRS:

IV. CONCLUSION
For the reasons stated above, the Court GRANTS the Petition in part and orders that
Kraken shall produce the following documents for Kraken users with any combination of accounts
having at least the equivalent of $20,000 in value of transactions (regardless of type) in
cryptocurrency in any one year, for the period January 1, 2016 through December 31, 2020:
1. Name (including full name, any pseudonym, or any user ID);
2. Date of Birth;
3. Taxpayer Identification Number;
4. Physical Address;
5. Telephone Number;
6. Email Address;
7. All documents described in Request No. 4 for the period January 1, 2016 through December 31, 2020 except that: a) Kraken shall only be required to produce transaction hash (ID) and blockchain addresses to the extent that information has been or is in the future backfilled into its transaction data; and b) as to Request 4(d), Kraken may produce raw data even though it does not specifically demarcate chainsplitting transactions.
8. All transactional ledgers responsive to Request No. 5 for the period January 1, 2016 through December 31, 2020.

KYC?Not me![3] holds a great amount of P2P services that you might consider if you want to start abandoning CEX's and their shady and abundant need for privacy information of their users.
[1]https://support.kraken.com/hc/en-us/articles/360000672203-Document-requirements-for-verification
[2]https://storage.courtlistener.com/recap/gov.uscourts.cand.407965/gov.uscourts.cand.407965.34.0.pdf
[3]https://kycnot.me/

[MusaMohamed]

Unfortunately, CEXs have started asking for a lot of data recently. In the past, photocopying passports and any home bill was enough to prove your identity. Now you need to create a video and verify a lot of things. So if the amount of trading you do is a little, I suggest you start experimenting with bisq or any DEXs, otherwise you have to be Ready for any data that may be asked of you.

It is a lot of requirement for KYC and I dislike it.

We should be neutrally in this overwhelming KYC document requirements from centralized exchanges. I guess that they are tightening their KYC verification to minimize cases which pass through KYC with stolen documents. They maybe faced with stricter regulations on AML (Anti Money Laundering) so they go ahead to protect themselves first, not customer first.

Three biggest reasons like stricter AML against CEX, more cheating KYC from their customers, their exchange shady policy.

It is good if they can block users with money laundering, stolen documents but in reality, things are not like that, their database can be hacked or just their staffs will leak KYC data to get money from KYC-buying customers in dark markets.

Why KYC is extremely dangerous – and useless

[Abiky]

Was the withdrawal amount large or not compatible with the traditional withdrawal processes, because sometimes the bank may have requested those data from the platform, and therefore they asked you for it.

They won't ask you for this data all of a sudden something happened that made their systems increase the level of risk on your account.

Unfortunately, CEXs have started asking for a lot of data recently. In the past, photocopying passports and any home bill was enough to prove your identity. Now you need to create a video and verify a lot of things. So if the amount of trading you do is a little, I suggest you start experimenting with bisq or any DEXs, otherwise you have to be Ready for any data that may be asked of you.

I didn't make any withdrawals at all. I was just trying to link my bank account through ACH. Upon doing the process, I've received an error message stating that my bank account could not be linked. The system asked me to contact customer support for further assistance.

Let me tell you, that my Kraken account was never used before. It was a new account, and all I did was try to verify myself by uploading my driver's license and bank statement. The ACH issue led customer service to ask for my full SSN. While my issue is solved, I certainly don't like the fact that I gave sensitive information to a centralized exchange. If hackers break through, they could steal all Americans' identity. Unless Kraken has the security of a bank, I'd use it with extreme caution.   

[RickDeckard]

~
I didn't make any withdrawals at all. I was just trying to link my bank account through ACH. Upon doing the process, I've received an error message stating that my bank account could not be linked. The system asked me to contact customer support for further assistance.
~

Were you using Plaid in order to connect your bank account through ACH? If you were then that was the procedure that triggered the support agent asking for your SSN. According to Kraken rules regarding funding accounts with using ACH via Plaid[1], one of the requirements to enable this kind of system is that your Kraken account must be verified to the Intermediate or Pro levels. In order to attain any of those levels one requirement that is common in all of them is providing Kraken your full SSN[2].

If you didn't used Plaid then they would allow you to trade by getting an Express level[3] (and still use ACH). In the Express level they will only ask you the last four digits of your SSN[2].
[1]https://support.kraken.com/hc/en-us/articles/8795459449492-How-do-I-fund-my-account-with-USD-using-ACH-via-Plaid-
[2]https://support.kraken.com/hc/en-us/articles/201352206-Verification-level-requirements
[3]https://support.kraken.com/hc/en-us/articles/360061352231-ACH-online-banking-purchases

[Abiky]

Were you using Plaid in order to connect your bank account through ACH? If you were then that was the procedure that triggered the support agent asking for your SSN. According to Kraken rules regarding funding accounts with using ACH via Plaid[1], one of the requirements to enable this kind of system is that your Kraken account must be verified to the Intermediate or Pro levels. In order to attain any of those levels one requirement that is common in all of them is providing Kraken your full SSN[2].

If you didn't used Plaid then they would allow you to trade by getting an Express level[3] (and still use ACH). In the Express level they will only ask you the last four digits of your SSN[2].
[1]https://support.kraken.com/hc/en-us/articles/8795459449492-How-do-I-fund-my-account-with-USD-using-ACH-via-Plaid-
[2]https://support.kraken.com/hc/en-us/articles/201352206-Verification-level-requirements
[3]https://support.kraken.com/hc/en-us/articles/360061352231-ACH-online-banking-purchases

Yes, I did. That explains a lot. Thank you for the clarification. I really appreciate it. Still, this makes me wonder why Coinbase didn't ask me for my full SSN in the first place. It uses Plaid just like Kraken, anyways.

What I'm worried about is Kraken's security methods. A major hack could be a real blow to the crypto exchange. It's not like US customers have any other choice, especially when KYC is mandatory to buy/sell crypto with Fiat (USD). With how Mt. Gox and FTX collapsed in the past (although no personal info was stolen, AFAIK), I'd proceed with caution when using any centralized exchange. Just my two sats.

[hugeblack]

What I'm worried about is Kraken's security methods. A major hack could be a real blow to the crypto exchange. It's not like US customers have any other choice, especially when KYC is mandatory to buy/sell crypto with Fiat (USD). With how Mt. Gox and FTX collapsed in the past (although no personal info was stolen, AFAIK), I'd proceed with caution when using any centralized exchange. Just my two sats.

Sooner or later, these platforms will turn into a model closer to banks, especially with the possibility of issuing unified global regulatory legislation, so try to use the minimum level of accounts in which the requirements are mostly a passport, a selfie and some words, and mostly an invoice, just as is the case with Express level, but if you intend to withdraw large amounts, I advise you to create an account in several platforms instead of increasing your current account restrictions by providing more data.

[RickDeckard]

What I'm worried about is Kraken's security methods. A major hack could be a real blow to the crypto exchange. It's not like US customers have any other choice, especially when KYC is mandatory to buy/sell crypto with Fiat (USD). With how Mt. Gox and FTX collapsed in the past (although no personal info was stolen, AFAIK), I'd proceed with caution when using any centralized exchange. Just my two sats.

You ended your intervention rather well - You should only provide information that you are comfortable to share (and to assume that it will get leaked some day in the future). This applies to anything in life honestly as no one can assure you that your private information is secure in the long term because, sadly, no one knows what will happen in the long term. If this scares you, good. It means you are aware.

In the meantime, why don't you consider using reputable P2P markets? Here's a great list to get a head start[1]. If you've got doubts regarding some of them feel free to post in the forum (or better yet, search for it first). I'm sure someone eventually will help you.
[1]https://kycnot.me/

[LoyceV]

Here, in the Netherlands, the equivalent of the SSN is called "BSN". It started as a fiscal number a long time ago, but nowadays it's used almost anywhere, from driving license and passport to banks, hospitals, insurances, schools and company registrations. You're supposed to keep it a secret, but that's impossible considering how widely used it is. I've never had a foreign website ask for it though.

[Abiky]

Sooner or later, these platforms will turn into a model closer to banks, especially with the possibility of issuing unified global regulatory legislation, so try to use the minimum level of accounts in which the requirements are mostly a passport, a selfie and some words, and mostly an invoice, just as is the case with Express level, but if you intend to withdraw large amounts, I advise you to create an account in several platforms instead of increasing your current account restrictions by providing more data.

That's what I should've done in the first place. But I was stupid enough to become fully verified, just because I was in a hurry to sell some crypto. Do not make the same mistake as I did. CEXs are the main target of hackers, not only because they hold plenty of crypto in their reserves, but also because they store personal information. If the CEX has strong security standards, hackers will have a hard time getting access to them. But I wouldn't trust these entities (CEXs) especially when they're centralized.

That said, I believe DEXs are a much better choice. The only issue is that you cannot buy sell/crypto with Fiat using a DEX. You'd need to make a balance between both exchanges' advantages/disadvantages to make your move. Who knows how long Kraken will last?